Category: New Territories

Latest article for 21Cryptos magazine. Saving the world’s worst economic crisis with Cryptocurrency – discusses a few recent attempts by crypto-currency companies and foundations to stabilize Venezuelan hyper-inflation by increasing the adoption of crypto-currencies.

The rocket had failed. Kim Jong-un snapped off his the monitor and turned to face his advisors. What could they possibly tell him? This was total failure. Five ashen men in uniform glittered in the gloom. They groveled and made excuses. Kim lifted a hand and batted the air as if to shoo a fly, and the men backed away slowly, heads bowed deeply in shame. He waited for them to leave and left the control room for his private chambers. The hallway smelled of sandalwood and cognac.

Let me begin in the small mountain state of Colorado, in the city of Boulder, a city of some 60,000 souls laying approximately a day’s journey from the great aerodrome of Denver International Airport. Boulder is subject to the President of the United States of America, and its inhabitants worship myriad gods and goddesses, though most accept Jesus Christ as their lord. The city rests at the base of a great cliff, in the foothills the Rocky Mountains, the tallest and most forbidding of mountain ranges in the United States of America, though its highest peaks are dwarfed by the Himalayas.

States are beginning to mature from resource- and foreign aid-based economies to ‘middle-income,’ as they transition demand begins to grow in predictable markets such as infrastructure, telecom, automobiles and consumer goods.

Many “emerging middle income” countries have endured strict state controls over the economy, such as Vietnam, Uganda, India… These sectors often are dominated by one or two companies. Well-managed companies will face little competition, particularly when insulated from foreign competition.

A “buy-and-hold” strategy will provide insulation from political and economic fluctuations over time and best take advantage of these growing economies.

Annual growth (after inflation) of these economies approaches and often exceeds 10 percent despite the poor performance of the global economy. Individual sectors have enjoyed much faster growth.

STAGE ONE: LOGISTICS – finding an online brokerage — one with a modest or non-existant annual fee — with access to emerging markets. The best so far is Scottrade which offers ADPs for Mexico, Philippines, South Africa, Thailand and Brazil. Vietnam offers online trading accounts… Another issue is finding index funds that focus on the sector to give me a little bit of insulation and breadth.